Update shared on24 Sep 2025
Fair value Decreased 3.03%Analysts have lowered their price target for LKQ to $42.10, citing weaker-than-expected Q2 results, downward EPS revisions, and persistent market headwinds, with the fair value estimate declining from $43.42 to $42.10.
Analyst Commentary
- Weaker than expected Q2 results prompted reductions in adjusted EPS estimates for 2025 and 2026.
- Significant headwinds in LKQ's major markets are creating challenging operating conditions.
- Price target revisions reflect lower growth and profitability outlooks based on recent performance.
- Shares have declined nearly 18% post-Q2 report, influencing the repricing.
- Bullish analysts believe the price decline creates an attractive long-term entry point despite near-term challenges.
What's in the News
- LKQ lowered full-year 2025 earnings guidance, with expected organic parts and services revenue growth now at negative 3.5% to negative 1.5%, and diluted EPS forecast at $2.47 to $2.77 versus previous $2.91 to $3.21.
- LKQ repurchased 1,000,000 shares for $39.53 million in Q2 2025, completing 66,563,000 shares (23.02% of shares outstanding) for $2.87 billion under its ongoing buyback program.
- LKQ was added to the Russell 2500 Index and Russell 2500 Value Index.
- LKQ was added to the Russell 2500 Value Benchmark.
Valuation Changes
Summary of Valuation Changes for LKQ
- The Consensus Analyst Price Target has fallen slightly from $43.42 to $42.10.
- The Future P/E for LKQ has fallen slightly from 15.64x to 15.20x.
- The Discount Rate for LKQ remained effectively unchanged, moving only marginally from 8.18% to 8.25%.
Disclaimer
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